Thursday 14th May 1998 OZEMAIL ACQUIRES 50% OF POWERUP
OzEmail announced today that it intends to acquire 50% of PowerUp, the Queensland ISP behind the well-known WebCentral hosting service.
According to the company’s financial results, which were released at the same time as the announcement, OzEmail’s revenues increased by 105 per cent from $10.8m in the first quarter of 1997 to $22m in the first quarter of 1998. However, over the same period OzEmail’s net loss rose from $316,000 to $4.3m.
OzEmail attributes most of the growth to the acquisition of Access One for $25 million last November, in a deal which was expected to add 40% to revenues all by itself; and most of the losses to its investments in OzEmail Phone and OzEmail Fax.
OzEmail will pay approximately $2m for a majority interest in PowerUp in a deal that is still being finalised. PowerUp currently has about 15,000 internet access subscribers, 2,500 web hosting clients and will turn over between $5m and $6m this financial year, according to PowerUp director Lloyd Ernst.
Mr Ernst said that OzEmail was seeking to purchase just over 50 per cent of PowerUp, but stressed that the company’s operations were to remain separate from OzEmail’s with a different pricing structure.